Nevada Power (NVP) 8-K Results of Operations and Financial Condition

EXHIBIT 99.2

            Funds from Operations (“FFO”) and Adjusted FFO, which is FFO adjusted to account for cash inflows or outflows associated with the deferred energy accounts, are presented here because NV Energy, Inc. (the “Company”) believes that these measures are useful to investors because the rating agencies use these measures when determining a company’s credit ratings.  The cost of the Company’s debt, the ability of the Company’s subsidiaries to pay dividends to the Company, and other capital and operational costs and expenses are impacted by the Company’s credit ratings.  The Company believes that net income (loss) is the most directly comparable GAAP measure to FFO.

Since FFO excludes certain items includable in net income (loss), reliance on the measure has limitations; management compensates for these limitations by using the measure simply as a supplemental measure that is weighed in the balance with other GAAP measures.  FFO is not necessarily an indication of the Company’s cash flow available to fund cash needs.  Additionally, it should not be used as an alternative to net income (loss) when evaluating the Company’s financial performance or to cash flow from (used by) operating, investing and financing activities when evaluating the Company’s liquidity or ability to make cash distributions or pay debt service.  The FFO presented by the Company may not be comparable to the FFO presented by other utility companies.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
NV Energy, Inc.
Funds From Operations (FFO)
	Six Months ended June 30,						Year Ended December 31,									LTM June 30,
	2009			2008(1)			2008			2007(1)			2006(1)			2009
Net Income (Loss)	$	(3,861	)	$	60,192		$	208,887		$	197,295		$	277,451		$	144,834
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		158,371			126,411			260,608			235,532			228,875			292,568
Deferred taxes and deferred investment tax credit		68,588			88,346			52,060			79,337			136,026			32,302
AFUDC(2) (Debt and Equity)		(26,934	)		(44,310	)		(67,968	)		(57,776	)		(35,345	)		(50,592	)
Reinstatement of deferred energy costs		-			-			-			-			(178,825	)		-
Carrying charge on Lenzie plant		-			-			-			(16,080	)		(33,440	)		-
Reinstated interest on deferred energy		-			-			-			(11,076	)		-			-
Gain on sale of investment		-			-			-			(1,369	)		(62,927	)		-
Other, net		37,256			(10,992	)		100,482			71,543			53,561			148,730
Funds from Operations (Before Deferred Energy Costs)		233,420			219,647			554,069			497,406			385,376			567,842
Amortization of energy costs, net of deferrals		141,802			33,388			2,717			309,587			127,495			111,131
Payment to terminating supplier		-			-			-			-			(65,368	)		-
Proceeds from claim on terminating supplier		-			-			-			-			41,365			-
Adjusted Funds from Operations	$	375,222		$	253,035		$	556,786		$	806,993		$	488,868		$	678,973
Long-term debt		5,571,799			4,451,781		$	5,266,982		$	4,137,864		$	4,001,542			5,571,799
Current maturities of long-term debt		9,085			10,298			9,291			110,285			8,348			9,085
Total Debt	$	5,580,884		$	4,462,079		$	5,276,273		$	4,248,149		$	4,009,890		$	5,580,884
Interest charges	$	166,192		$	135,804		$	300,857		$	279,788		$	311,088		$	331,245
AFUDC(2) (Debt)		12,168			19,240			29,527			25,967			17,119			22,455
Adjusted Interest Expense	$	178,360		$	155,044		$	330,384		$	305,755		$	328,207		$	353,700
Total Debt/Funds from operations								9.52	x		8.54	x		10.41	x		9.83	x
Total Debt/Adjusted FFO								9.48	x		5.26	x		8.20	x		8.22	x
Funds from Operations Interest Coverage								2.68	x		2.63	x		2.17	x		2.61	x
Adjusted Funds From Operations Interest Coverage								2.69	x		3.64	x		2.49	x		2.92	x
Common Shareholders' Equity							$	3,131,186		$	2,996,575		$	2,622,297		$	3,083,773
Total Capitalization (including current maturities of long-term debt)							$	8,407,459		$	7,244,724		$	6,632,187		$	8,664,657
Total Debt/Total Capitalization								62.76	%		58.64	%		60.46	%		64.41	%
(1) Certain financial statement line items of prior period's information have been re-grouped or reclassified to conform with current period presentation. The re-grouping or reclassifications have not affected previously reported results of operations or common shareholders' equity.
(2) Allowance for Funds Used During Construction or Allowance for Borrowed Funds Used During Construction.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Nevada Power Company
Funds From Operations (FFO)
	Six Months ended June 30,						Year Ended December 31,									LTM June 30,
	2009			2008(1)			2008			2007(1)			2006(1)			2009
Net Income (Loss)	$	(22,650	)	$	41,146		$	151,431		$	165,694		$	224,540		$	87,635
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		105,873			82,953			171,080			152,139			141,585			194,000
Deferred taxes and deferred investment tax credit		51,494			18,119			45,039			56,868			107,392			78,414
AFUDC(2) (Debt and Equity)		(23,841	)		(25,925	)		(45,980	)		(29,057	)		(23,369	)		(43,896	)
Reinstatement of deferred energy costs		-			-			-			-			(178,825	)		-
Carrying charge on Lenzie plant		-			-			-			(16,080	)		(33,440	)		-
Reinstated interest on deferred energy		-			-			-			(11,076	)		-			-
Other, net		19,797			(8,562	)		73,209			38,821			25,783			101,568
Funds from Operations (Before Deferred Energy Costs)		130,673			107,731			394,779			357,309			263,666			417,721
Amortization of deferred energy costs, net of deferrals		96,612			33,315			4,211			218,992			74,413			67,508
Payment to terminating supplier		-			-			-			-			(37,410	)		-
Proceeds from claim on terminating supplier		-			-			-			-			26,391			-
Adjusted Funds from Operations	$	227,285		$	141,046		$	398,990		$	576,301		$	327,060		$	485,229
Long-term debt	$	3,712,016		$	2,664,929		$	3,385,106		$	2,528,141		$	2,380,139		$	3,712,016
Current maturities of long-term debt		9,085			8,636			8,691			8,642			5,948			9,085
Total Debt	$	3,721,101		$	2,673,565		$	3,393,797		$	2,536,783		$	2,386,087		$	3,721,101
Interest charges	$	112,180		$	82,461		$	186,822		$	174,667		$	176,612		$	216,541
AFUDC(2) (Debt)		10,668			11,375			20,063			13,196			11,614			19,356
Adjusted Interest Expense	$	122,848		$	93,836		$	206,885		$	187,863		$	188,226		$	235,897
Total Debt/Funds from Operations								8.60	x		7.10	x		9.05	x		8.91	x
Total Debt/Adjusted FFO								8.51	x		4.40	x		7.30	x		7.67	x
Funds from Operations Interest Coverage								2.91	x		2.90	x		2.40	x		2.77	x
Adjusted Funds From Operations Interest Coverage								2.93	x		4.07	x		2.74	x		3.06	x
Common Shareholder's Equity							$	2,627,567		$	2,376,740		$	2,172,198		$	2,542,948
Total Capitalization (including current maturities of long-term debt)							$	6,021,364		$	4,913,523		$	4,558,285		$	6,264,049
Total Debt/Total Capitalization								56.36	%		51.63	%		52.35	%		59.40	%
(1) Certain financial statement line items of prior period's information have been re-grouped or reclassified to conform with current period presentation. The re-grouping or reclassifications have not affected previously reported results of operations or common shareholders's equity.
(2) Allowance for Funds Used During Construction or Allowance for Borrowed Funds Used During Construction.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Sierra Pacific Power Company
Funds From Operations (FFO)
	Six Months ended June 30,						Year Ended December 31,									LTM June 30,
	2009			2008(1)			2008			2007(1)			2006(1)			2009
Net Income	$	33,940		$	35,133		$	90,582		$	65,667		$	57,709		$	89,389
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		52,498			43,458			89,528			83,393			87,279			98,568
Deferred taxes and deferred investment tax credit		33,688			10,537			24,598			(36,713	)		(39,361	)		47,749
AFUDC(2) (Debt and Equity)		(3,093	)		(18,385	)		(21,988	)		(28,719	)		(11,976	)		(6,696	)
Other, net		17,364			2,235			22,872			29,451			23,457			38,001
Funds from Operations (Before Deferred Energy Costs)		134,397			72,978			205,592			113,079			117,108			267,011
Amortization of deferred energy costs, net of deferrals		45,190			73			(1,494	)		90,595			53,082			43,623
Payment to terminating supplier		-			-			-			-			(27,958	)		-
Proceeds from claim on terminating supplier		-			-			-			-			14,974			-
Adjusted Funds from Operations	$	179,587		$	73,051		$	204,098		$	203,674		$	157,206		$	310,634
Long-term debt	$	1,373,992		$	1,261,788		$	1,395,987		$	1,084,550		$	1,070,858		$	1,373,992
Current maturities of long-term debt		-			1,662			600			101,643			2,400			-
Total Debt	$	1,373,992		$	1,263,450		$	1,396,587		$	1,186,193		$	1,073,258		$	1,373,992
Interest charges	$	34,686		$	32,466		$	72,712		$	60,735		$	71,506		$	74,932
AFUDC(2) (Debt)		1,500			7,865			9,464			12,771			5,505			3,099
Adjusted Interest Expense	$	36,186		$	40,331		$	82,176		$	73,506		$	77,011		$	78,031
Total Debt/Funds from Operations								6.79	x		10.49	x		9.16	x		5.15	x
Total Debt/Adjusted FFO								6.84	x		5.82	x		6.83	x		4.42	x
Funds from Operations Interest Coverage								3.50	x		2.54	x		2.52	x		4.42	x
Adjusted Funds From Operations Interest Coverage								3.48	x		3.77	x		3.04	x		4.98	x
Common Shareholder's Equity							$	877,961		$	1,001,840		$	884,737		$	970,218
Total Capitalization (including current maturities of long-term debt)							$	2,274,548		$	2,188,033		$	1,957,995		$	2,344,210
Total Debt/Total Capitalization								61.40	%		54.21	%		54.81	%		58.61	%
(1) Certain financial statement line items of prior period's information have been re-grouped or reclassified to conform with current period presentation. The re-grouping or reclassifications have not affected previously reported results of operations or common shareholders's equity.
(2) Allowance for Funds Used During Construction or Allowance for Borrowed Funds Used During Construction.